Bitcoin Plunges 7% Amid Warsh Nomination Fears
Bitcoin's price plummeted by 7% on January 30, 2026, after Kevin Warsh was nominated as Federal Reserve Chair. The drop in value came as a result of expectations that higher interest rates and aggressive balance-sheet cuts would follow.
The cryptocurrency market saw $2.4 billion in long positions liquidated, marking the largest crypto liquidation event of 2026. This move reflected investors' concerns about the potential impact on Bitcoin's price due to tighter monetary policy and high interest rates.
Despite the Federal Reserve keeping rates steady between 3.50% and 3.75% through five decisions this year, uncertainty remains ahead of the September meeting. If there is no shift to looser monetary policy or dovish signals, Bitcoin may continue to face selling pressure amid tight liquidity and high interest rates.